Deal may be in the works to help Chabert

Wednesday

Oct 31, 2012 at 6:53 PM

An infusion of money from local parish governments and public hospitals could be on the table to help curb the immediate impact of a devastating $14.3 million cut at Leonard J. Chabert Medical Center in Houma.

Nikki BuskeyStaff Writer

An infusion of money from local parish governments and public hospitals could be on the table to help curb the immediate impact of a devastating $14.3 million cut at Leonard J. Chabert Medical Center in Houma.State officials are also working with local hospitals and Chabert Medical Center to establish a public/private partnership that can help sustain the charity hospital in the long term.State Rep. Gordon Dove, R-Houma, said local hospitals are “very interested” in coming up with a deal to help the struggling hospital. Without help, Chabert's ability to serve low-income and uninsured patients will be drastically reduced, sending them to other area hospitals and affecting those institutions' bottom line.The budget cuts are a part of a plan the LSU governing board approved last month to eliminate $152 million from the state's university-run charity hospital system. The cuts will affect seven south Louisiana hospitals, eliminating dozens of inpatient beds and 1,500 jobs. LSU officials are reacting to significant federal budget cuts to Medicaid that have helped sustain the hospitals.Earlier this month, Terrebonne Parish President Michel Claudet hosted a meeting at his office with Bruce Greenstein, state Department of Health and Hospitals secretary; LSU hospital system chief, Dr. Frank Opelka; heads of major local hospitals including Chabert, Terrebonne General Medical Center, Thibodaux Regional Medical Center and the Ochsner Health System; local lawmakers; and Lafourche Parish President Charlotte Randolph.The meeting put on the table “the severity of what was going to occur” because of the major cuts underway at Chabert Medical Center, said state Sen. Norby Chabert, R-Houma. The hospital is named for Chabert's father, the late senator.Chabert said lawmakers are working to address three major budget crises looming for the hospital.The first issue is the $14.3 million in budget cuts coming in January. Those cuts involve closures of beds and specialized health care clinics, 245 layoffs, and possible elimination and loss of accreditation for Chabert Medical Center's important graduate medical program, which fields the load of 75 percent of the patient care in the hospital, Chabert said.Lawmakers and charity hospital officials must also create a firm long-term plan for the hospital to prepare for another possible round of cuts in July during the legislative session. Then, finally, they must make sure that whatever hospital partnership they build is prepared to withstand challenges coming from the possible implementation of the federal Affordable Care Act.To mitigate the immediate cuts, Chabert said local hospitals as well as Terrebonne and Lafourche parish governments have discussed providing Chabert Medical Center with an infusion of money.Chabert wouldn't give details about the deal or say how much money might be on the table, but he said a deal would likely be nailed down before the holidays.Claudet would not confirm or deny whether Terrebonne Parish government is considering giving money to Chabert. Lafourche Parish President Charlotte Randolph could not be reached for comment.Chabert said Terrebonne and Lafourche are the only communities that have stepped up to help their charity hospital with money.Negotiations about who will come forward to partner with Chabert Medical Center in the long-term are still up in the air, Chabert said.“Just about every charity hospital in the state is trying to find a way to keep their hospital open via a public/private partnership,” Chabert said. “We've had complete cooperation from Thibodaux Regional, Terrebonne General and Ochsner. We've engaged in several conversations about the short- and long-term options.”The Department of Health and Hospitals issued an emergency rule effective Thursday that will allow hospitals not owned by the state that partner with LSU charity hospitals to be eligible for disproportionate share hospital payments and supplemental Medicaid payments. That would allow hospitals to be reimbursed for caring for indigent payments, said Jerry Phillips, undersecretary of the Department of Health and Hospitals. State officials hope the rule will provide flexibility to negotiate and will act as an incentive to encourage hospitals to partner with charity hospitals facing debilitating budget cuts.Local health care providers were vague about their prospects for pursuing a partnership with Chabert Medical Center.Phyllis Peoples, president and CEO of Terrebonne General Medical Center, said the hospital is working with leaders at state and local levels to “explore opportunities that are financially and operationally feasible and will better serve those in need of services in the region.”Warner Thomas, president and CEO of Ochsner Health System, said Ochsner will continue to work with Chabert to maintain the hospital's graduate medical program. Ochsner is also “exploring opportunities to provide assistance and develop relationships that will benefit the many patients served by Chabert.”Greg Stock, CEO of Thibodaux Regional Medical Center, said he appreciated Sen. Chabert's efforts to bring all parties together to discuss a complicated situation."We have initiated discussions at the state and local level, to include fact finding to determine how vital health care services can continue to be provided to the people of this region," Stock said.

Nikki Buskey can be reached at 857-2205 or nicole.buskey@houmatoday.com.